One of the main benefits of a fixed-rate loan is that your monthly principal and interest payment will not change, no matter what happens to interest rates. However, that does not mean that your monthly mortgage payment will remain the same thru the entire term of the loan. Why? Because your monthly payment includes more than just the principal (P) and interest (I). It also includes taxes (T) and insurance (I) for which payments can and will vary from year to year.

If you mortgage payment includes your property taxes and insurance premiums, your lender will put these funds in an escrow account from which they will make the tax and insurance payments on your behalf. But as taxes and insurance premiums rise (and, occasionally, fall) the pro-rated amount in your monthly mortgage payment will need to adjust periodically. So, if you notice any changes on your monthly bill, check the inflow and outflow of funds to your escrow account to ensure your obligations are being met.